El Salvador has used a mini bitcoin price crash as an opportunity to add to its cryptocurrency holdings.
Salvador’s President Nayib Bukele revealed that the Central American country bought 150 bitcoins over the weekend, worth around $6.7 million at current exchange rates.
He made the announcement on Sunday night, shortly after the price of bitcoin dropped from $48,000 to just below $46,000.
“We just bought the dip. 150 new coins! El Salvador now has 700 coins.”
“If you buy dips they can never beat you. Presidential advice.”
The purchase comes less than two weeks after El Salvador officially introduced bitcoin as legal tender, making it the first country in the world to do so.
The country’s bitcoin law aims to profit from the cryptocurrency’s borderless and decentralized technology, although it is also fearful of major price volatility.
The cryptocurrency lowers remittance fees, which account for about 23 percent of El Salvador’s GDP, while also acting as a hedge against inflation and reducing reliance on the US dollar as a reserve currency.
It also provides a direct route to financial services in a country where about 70 percent of the population does not have a bank account.
Within hours of the law going into effect on September 7, the price of bitcoin fell by about 15 percent amid difficulties with state-backed digital wallet app Chivo.
The move has also prompted demonstrations in the country, with some protesters vandalizing several bitcoin ATMs.
A survey earlier this year found that only a third of Salvadorans were in favor of the new law, while many did not understand what cryptocurrency was all about.
Gunnar Jarv, co-founder of Hong Kong-based custodian First Digital Trust, said, “The news of El Salvador on the launch of bitcoin as legal tender in the country had left the country divided.” Granthshala.
“There will always be pros and cons of adopting new things that will inevitably change the lifestyles of people with uncertainty for those who may not understand it. However. Areas once worked on making bitcoin legal tender In the U.S. people realize the opportunities that may open to them, such as remittances and earning earnings on their bitcoins, will have a stronger belief in bitcoin adoption.
Credit: www.independent.co.uk /